Four Popular Ways to Mismanage Layoffs: II

With so many layoffs occurring in businesses all around the world, some are bound to be executed well, and some not. Knowing the common patterns of bunglers helps decision makers steer a better course, and helps others cope with the mistakes of the bunglers. last time, we examined how the personal perceptions of decision makers lead to trouble. In this Part II, we look at two common tactical errors.

Death by a thousand cuts

To limit layoffs, and to reduce their visibility, management executes small reductions weekly or monthly, forgoing press releases. They might even deny the actions, saying, "We're operating normally, making continuous adjustments as is our usual policy."

But people recognize that layoffs are happening. Many worry they'll be next. They become increasingly determined to survive, even at the expense of others. Toxic politics emerges, wars and anxiety become common, cooperation ceases, and productivity plummets.

At its best, this method is a form of denial; at its worst, a form of procrastination. A more straightforward approach that deals with the consequences of layoffs openly is more likely to create positive internal politics. If your company uses the thousand-cuts approach, recognize that the relative safety you feel at first is probably an illusion. Prepare yourself.

Minimalism

The relief minimalism provides
usually isn't enough to
turn things around

To avoid laying off too many, management lays off the minimum number believed necessary to survive the current situation. They plan to revisit the decision later, and if corrective action is needed, they'll say, "The situation has worsened."

The relief minimalism provides usually isn't enough to turn things around. A little later, the cycle repeats. People remaining after the first action are shocked, but they're glad they personally survived. They recover after the first hit, only to be hit again. Recovery is slower and less complete the second time. After three or four rounds, morale and productivity are both depressed.

As a decision maker, be certain first that the projected effect of any layoff is substantial financial relief, and second, that the resources freed in this way are committed to expand that relief. As an employee, this pattern is a signal to you that the cycle might repeat enough times to eventually target you. After a couple of cycles, ask yourself, "Do I think our decision makers are capable of getting this right?"

Distinguishing a company caught in unfortunate circumstances from a company in trouble because of mismanaged layoffs can be difficult. But by examining how well its leadership responds to severe challenges to its survival, we can sometimes determine whether organizational survival is possible. When organizational survival is in question, voluntary departure or accepting a buyout can be excellent choices.   First issue in this series   Top    Next Issue

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More about layoffs

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When you celebrate — even minor successes — you change your outlook, you energize yourself, and you create new ways to achieve more successes. Too often we let others define what we will celebrate. Actually, we're in complete command of what we celebrate. When we take charge of our celebrations, we make life a lot more fun.

Doorknob Disclosures and Bye-Bye Bombshells  [July 10, 2002]

A doorknob disclosure is an uncomfortable, painful, or embarrassing revelation offered at the end of a meeting or conversation, usually by someone who's about to exit. When we learn about bad news in this way, we can feel frustrated and trapped. How can we respond effectively?

Double Your Downsizing Damage  [July 17, 2002]

Some people believe that senior management is actually trying to hurt their company by downsizing. If they are they're doing a pretty bad job of it. Here's a handy checklist for evaluating the performance of your company's downsizers.

What's So Good About Being Laid Off?  [December 25, 2002]

Layoffs during the holiday period of November 15 through January 15 are far more common than you might think. Losing your job, or fearing that you might, is always difficult, but at this time of year it's especially helpful to keep in mind that the experience does have a bright side.

Beyond WIIFM  [August 13, 2003]

Probably the most widely used tactic of persuasion, "What's In It For Me," or WIIFM, can be toxic to an organization. There's a much healthier approach that provides a competitive advantage to organizations that use it.

Encourage Truth Telling  [November 19, 2003]

Getting to the truth can be a difficult task for managers. People sometimes withhold, spin, or slant reports, especially when the implications are uncomfortable or threatening. A culture that supports truth telling can be an organization's most valuable asset.

Those Across-the-Board Cuts That Aren't  [July 14, 2004]

One widespread feature of organizational life is the announcement of across-the-board cuts. Although they're announced, they're rarely "across-the-board." What's behind this pattern? How can we change it to a more effective, truthful pattern?

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How to Avoid a Layoff: The Inside Stuff  [January 28, 2009]

These are troubled economic times. Layoffs are becoming increasingly common. Here are some tips for changing your frame of mind to help reduce the chances that you will be laid off.

How to Avoid a Layoff: Your Relationships  [February 4, 2009]

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How to Avoid a Layoff: Your Situation  [February 11, 2009]

These are troubled economic times. Layoffs are becoming increasingly common. Here are some tips for positioning yourself in the organization to reduce the chances that you will be laid off.

Four Popular Ways to Mismanage Layoffs: I  [February 18, 2009]

When layoffs are necessary, the problems they are meant to address are sometimes exacerbated by mismanagement of the layoff itself. Here is Part I of a discussion of four common patterns of mismanagement, and some suggestions for those managers and other employees who recognize the patterns in their own companies.

Coping with Layoff Survival  [March 25, 2009]

Your company has just done another round of layoffs, and you survived yet again. This time was the most difficult, because your best pal was laid off, and you're even more fearful for your own job security. How can you cope with survival?

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Teamwork Myths: I vs. We  [July 1, 2009]

In high performance teams, cooperative behavior is a given. But in the experience of many, truly cooperative behavior is so rare that they believe that something fundamental is at work — that cooperative behavior requires surrendering the self, which most people are unwilling to do. It's another teamwork myth.

Hyper-Super-Overwork  [August 5, 2009]

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What Is Workplace Bullying?  [March 3, 2010]

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Self-Serving Bias in Organizations  [July 20, 2011]

We all want to believe that we can rely on the good judgment of decision makers when they make decisions that affect organizational performance. But they're human, and they are therefore subject to a cognitive bias known as self-serving bias. Here's a look at what can happen.

Pariah Professions: I  [June 5, 2013]

In some organizations entire professions are held in low regard. Their members become pariahs to some people in the rest of the organization. When these conditions prevail, organizational performance suffers.

Changing Blaming Cultures  [March 5, 2014]

Culture change in organizations is always challenging, but changing a blaming culture presents special difficulties. Here are three reasons why.

Constancy Assumptions  [July 16, 2014]

We necessarily make assumptions about our lives, including our work, because assumptions simplify things. And usually, our assumptions are valid. But not always.

Rationalizing Creativity at Work: II  [November 5, 2014]

Creative thinking at work can be nurtured or encouraged, but not forced or compelled. Leaders who try to compel creativity because of very real financial and schedule pressures rarely get the results they seek. Here are examples of tactics people use in mostly-futile attempts to compel creativity.

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Managing Wishful Thinking Risk  [October 21, 2015]

When things go wrong, and we look back at how we got there, we must sometimes admit to wishful thinking. Here's a framework for managing the risk of wishful thinking.

Wishful Significance: I  [December 16, 2015]

When things don't work out, and we investigate why, we sometimes attribute our misfortune to "wishful thinking." In this part of our exploration of wishful thinking we examine how we arrive at mistaken assessments of the significance of what we see, hear, or learn.

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Layoffs often signal their arrival well in advance, if you know what to watch for. Some of the indicators are subtle and easily confused with normal operations. Here are three more indicators that layoffs might be secretly underway.

Beating the Layoffs: I  [September 4, 2024]

If you work in an organization likely to conduct layoffs soon, keep in mind that exiting voluntarily before the layoffs can carry significant advantages. Here are some that relate to self-esteem, financial anxiety, and future employment.

Mitigating the Trauma of Being Laid Off  [April 2, 2025]

Trauma is an emotional response to horrible events — accidents, crimes, disasters, physical abuse, emotional abuse, gross injustices — and layoffs. Layoff trauma is real. Employers know how to execute layoffs with compassion, but some act out of cruelty. Know how to defend yourself.

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